Abstract Commences with an examination of SME research, traces how it has progressed over
the past two decades and then focuses on the growing interest relating to the application of
graduate skills. It primarily results from research carried out between 1996 and 1998, using a
database of 206 graduates and 32 firms. The framework of knowledge associated with skills and
competitiveness is explored, as is the issue of the categorisation of skills. Two categories are
principally identified ± personal and business ± with listings introduced following a process of
qualitative interviews with graduates and managers of SMEs. The lack of consensual paradigms
in relation to skills is explored. It is argued that the resulting SME value chain is a valid
alternative model with wider application among SME managers.